Noront Resources’ C$20 Million Financing Fully Subscribed

by Sam Kiri

Even though markets have seen some revival since March, the recession worries are yet to recede. Investor risk appetite has fallen along with consumer confidence and consumer spending, driving commodity prices down. It is not easy for mining companies to raise funds these days to finance their exploration endeavours. Those who successfully raise funds however are the companies that really have good properties in safe jurisdictions and a strong investment case.

We therefore view the recent financing by Canadian Venture listed Noront Resources (TSX.V: NOT) in a positive light. Noront’s main focus is on its McFauld's Lake Project, which includes significant, multiple high-grade nickel-copper-platinum-palladium, chromite and Vanadium discoveries in an area known as the "Ring of Fire". The company is the dominant land holder at the Ring of Fire and continues to delineate and prove up its discoveries with NI-43-101 technical and economic reports.

Development efforts are about to shift gears soon. Noront’s syndicate of agents led by Wellington West Capital Markets Inc. and including Dundee Securities Corporation, Genuity Capital Markets, Clarus Securities Inc. and IBK Capital Corp. has received commitments for the company’s C$20 million private placement offering of flow-through common shares. Noront has, subject to regulatory approval, granted the Agents, an option to offer for sale, on a best efforts basis, up to an additional CDN$5 million of Flow-Through Shares at the offering price of CDN$2.80 a share. The initial C$20 million offer was snapped up within two days!

Gross proceeds from the private placement will be used to fund ongoing exploration activities on the Company's McFauld's Lake project. Much of the focus however is expected to be on Eagle One deposit in an attempt to further delineate lenses. During the recent drill programme, Noront has intersected two separate lenses of mixed disseminated and massive sulphide mineralization located vertically below the previously interpreted limits of the Eagle One deposit. According to the management, both Eagle 1B and 1C (the two lenses intersected), have the potential to significantly increase Noront’s nickel, copper and platinum group element resource base.

In Noront’s prospect portfolio, Eagle One deposit is easily the most advanced and has a NI 43-101 compliant 3 million tonnes of indicated and inferred resources. The company however will commence development work at its Blackbird One and Blackbird Two discoveries as well towards the end of 2009.

About Noront Resources

Noront Resources is focused on its significant and multiple, high-grade nickel-copper-platinum-palladium, chromite and vanadium discoveries in an area known as the "Ring of Fire", an emerging multi-metals district located in the James Bay Lowlands of Ontario, Canada. Noront is the dominant land holder at the Ring of Fire and continues to delineate and prove up its discoveries with NI 43-101 technical and economic reports and an aggressive and well financed drill plan for 2009. All material information on Noront may be found on the company website